UNAI PÁRAMO, UXUE LEJARZA, MARÍA

BARRIO, ADRIANA LIENDO

COMPANY INTRODUCTION & BACKGROUND
MARKET-ENTRY STRATEGIES USED
CHALLENGES & SOLUTIONS
RESULTS & LESSONS LEARNED
CONNECTION TO COURSE CONCEPTS
 1. COMPANY INTRODUCTION AND BACKGROUND

Pandora is a renowned jewelry company founded in 1982 by Per and Winnie

Enevoldsen in Copenhagen, Denmark. In the beginning, they started with a
small family jewelry store, selling imported pieces from Thailand.

After several years operating as a wholesaler, they decided to go one step

further and set up their own factory in Thailand. This strategic move allowed
them to control the entire production process, ensuring the quality of their
jewelry and differentiating themselves in the market.
1. COMPANY INTRODUCTION AND BACKGROUND

Pandora achieved fame with the launch of its iconic charms bracelet,
allowing customers to personalize their jewelry. Its focus on quality,
personalization and storytelling has led the brand to become a global
benchmark in affordable luxury jewelry.

Today, Pandora is present in more than 100 countries with over 7,000
points of sale, using two business models:

Vertical integration: controls the entire process, from design to sales.

Franchises: stores that operate under its name and philosophy.

2. MARKET ENTRY STRATEGIES TO ESTABLISH GLOBAL PRESENCE
OWNED SHOPS AND RETAIL EXPANSION
Pandora has opted to open its own shops in strategic markets in order to have greater control
over the brand, the customer experience and the marketing of its products. By managing its
own outlets, the company ensures the consistency of its image and strengthens customer
loyalty. This strategy has been implemented mainly in markets with high demand and
economic stability.
Retail expansion has been key to its global growth, ensuring that the brand is present in major
cities and shopping centres with high consumer traffic.
BRAZIL
CHINA
2. MARKET ENTRY STRATEGIES TO ESTABLISH GLOBAL PRESENCE
FRANCHISING
In many markets, Pandora has used the franchise model to accelerate its growth without
assuming the full cost of investing in new shops. Through this model, the company allows local
partners to operate under its brand, facilitating expansion into territories where the company
has no direct experience.
The use of franchising allows Pandora to leverage the market knowledge of its local partners,
better adapting to the conditions and preferences of consumers in each country.

MEXICO TURKEY
2. MARKET ENTRY STRATEGIES TO ESTABLISH GLOBAL PRESENCE
JOINT VENTURES
When Pandora enters markets with complex regulations or where the presence of a local partner
is key to operating efficiently, it chooses to establish joint ventures. These alliances allow the
sharing of risks and resources with local companies that already have experience in the market.
Joint ventures are an effective strategy for entering regions where trade or regulatory barriers are
high, such as Asia or the Middle East, facilitating market penetration and sustained growth.

CHINA MIDDLE EAST

2. MARKET ENTRY STRATEGIES TO ESTABLISH GLOBAL PRESENCE
PRODUCT LOCALISATION
Pandora has adapted its designs and marketing strategies to appeal to consumers in different
regions. Instead of offering a uniform global catalogue, the company launches collections
inspired by the local cultures and traditions of each country, which allows the brand to feel
closer to customers.
This approach not only helps improve sales in specific markets, but also strengthens Pandora's
identity as a brand that understands and respects cultural diversity.
UNITED STATES INDIA
2. MARKET ENTRY STRATEGIES TO ESTABLISH GLOBAL PRESENCE
E-COMMERCE AND DIGITAL TRANSFORMATION
The rise of online shopping has led Pandora to strengthen its digital presence through e-
commerce platforms. The brand has developed omni-channel strategies, combining the
physical shop experience with digital tools that facilitate online shopping.
Through its website and mobile apps, customers can customise jewellery, view charms
combinations and make purchases with direct shipping. This strategy has been crucial to
expanding in markets where e-commerce is a growing trend.

AUSTRALIA
SPAIN
2. MARKET ENTRY STRATEGIES TO ESTABLISH GLOBAL PRESENCE
PREDICTIVE ANALYTICS FOR INVENTORY
Pandora has incorporated advanced data analytics tools to optimise its supply chain and
inventory management. Using artificial intelligence and big data, the company predicts
product demand based on seasons, special events and consumer trends.
This allows the brand to reduce costs, minimise overstock losses and improve efficiency in
product distribution globally.

UNITEDD KINGDOM CANADA

3. CHALLENGES & SOLUTIONS
Cultural Challenges
Pandora’s core silver charm bracelets struggled in China, where gold jewellery
was more popular = Consumer preferences differ from a company’s home market

Marketing & Consumer Behaviour: Western consumers valued in-store

experiences, while Asian markets were more reliant on e-commerce

Solutions:
Product Diversification: Understanding the importance of cultural adaptation,
Pandora introduced gold and region-specific collections in China

Digital Expansion: Strengthened its online presence through Tmall and

influencer marketing, (multi-channel entry approach)
3. CHALLENGES & SOLUTIONS

POLITICAL & REGULATORY CHALLENGES

Many countries imposed import duties and strict labor regulations, affecting
Pandora’s pricing and distribution
With concerns about ethical and sustainable jewellery production, Pandora had
to comply with stricter regulations

SOLUTIONS:
Strategic Production Shift: By centralizing manufacturing in Thailand, Pandora
minimized trade barriers and production costs

Sustainability Commitments: The company committed to use 100% recycled

silver and gold by 2025, aligning with global corporate social responsibility (CSR)
trends, which enhance brand reputation and compliance.
3. CHALLENGES & SOLUTIONS
ECONOMICAL CHALLENGES
Luxury goods sales drop during economic downturns
= Economic instability increases the risks of global expansion

Currency Risks: Expanding into different markets exposed to exchange rate

fluctuations
To keep prices stable, they needed a strategy to manage financial risks

SOLUTIONS:
Affordable Collections: Introducing budget-friendly jewellery lines
= attract price-sensitive consumers

Pandora set prices based on each country’s currency and used strategies to avoid
losing money from exchange rate changes
3. CHALLENGES & SOLUTIONS
OPERATIONAL CHALLENGES
Running a global distribution network while maintaining high-quality
production required strong company-specific skills, (resource-based view of
international strategy)

The shift from traditional retail to digital-first markets tested the ability to
adapt its market entry strategies

SOLUTIONS:
Leverage AI-powered inventory management to improve logistics, (resource-
based approach)

Introduction of virtual try-ons and interactive e-commerce strengthened its

competitive advantage = importance of innovation in global market entry.
Financial Performance & Market Growth
Pandora expanded into over 100 countries, reporting a 13% revenue increase in 2024 (DKK 31.7
billion).
The company’s focus on e-commerce and digital marketing helped sustain growth, especially
in markets like China.

Brand Recognition & Global Adaptation Success

Pandora adapted its offerings and became the top jewelry brand in the U.S. in 2024.
Its sustainability initiatives improved brand perception, aligning with the growing demand for
ethically sourced products.

Long-Term Strategic Growth

Focusing on product innovation, digital transformation, and sustainability, positioned Pandora
for continued success
Key takeaways include the importance of cultural adaptation, regulatory compliance, and
market-specific strategies to prosper globally
5. CONNECTIONS TO COURSE CONCEPTS
PANDORA’S EXPANSION METHODS AND APPLIED THEORIES
Pandora has followed a franchising and licensing approach to its internationalization. This
method is related to the expansion concepts presented in chapter 5:

FRANCHISING AND LICENSING

According to business growth theory, this approach allows for rapid expansion with relatively
low investment. This model allows to:
Reduce financial risks,
Leverage local market knowledge,
Maintain brand control
5. CONNECTIONS TO COURSE CONCEPTS

Direct and indirect exporting

The company started by selling in foreign markets through distributors before establishing a
stronger presence.
Indirect export: It sold through distributors and retailers, reducing costs and risks.
Direct Export: As the brand grew, it began selling directly online and in own stores,
increasing margins and distribution control
5. CONNECTIONS TO COURSE CONCEPTS
FOREIGN MARKET ENTRY MODELS
Pandora has applied various strategies to enter international markets according to the
conditions of each country. These strategies have allowed it to optimize costs, minimize risks
and strengthen its control over the brand.

FRANCHISING
Allow rapid expansion with lower investment and risk, taking advantage of the local
knowledge of franchisees, although they require supervision to maintain brand uniformity.

LICENSING
Facilitates penetration of new markets without direct investment, delegating production and
distribution to local partners, although with less control over quality.

FDI
Used in key markets to ensure total brand control and higher profit margins, although it
involves higher costs and risks.
5. CONNECTIONS TO COURSE CONCEPTS
STRATEGIC CONSIDERATIONS IN INTERNATIONALIZATION
To ensure successful global expansion, Pandora has strategically managed key aspects such as
market selection, cultural adaptation and entry strategy in each country.

LOCATION ADVANTAGES
Pandora has prioritized markets with high demand for affordable luxury, following strategies
based on the presence of consumers with high purchasing power.

CULTURAL AND INSTITUTIONAL DISTANCE

The brand has adapted its marketing strategy to different markets, adjusting its offering
according to local preferences.

EARLY OR LATE ENTRY STRATEGY

In some key markets, Pandora has acted as a first mover, establishing its brand before the
arrival of competitors.
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